Regarding renewal, sale, or assignment/transfer of a Bumper Man franchise, what claims are excluded from any required release under the Maryland Franchise Registration and Disclosure Law?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Sections 3(b) and 16(d) of the Franchise Agreement will be supplemented by the addition of the following sentence: "However, any release required as a condition of renewal, sale and/or assignment/transfer will not apply to any claims or liability arising under the Maryland Franchise Registration and Disclosure Law."
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- The following is added as a new Section 26(k) to the end of the Franchise Agreement: "All representations requiring Franchisee to assent to a release, estoppel or waiver of liability are not intended to, nor will they, act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law."
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, specifically the addendum pertaining to the Maryland Franchise Registration and Disclosure Law, any release required as a condition of renewal, sale, or assignment/transfer of the franchise will not apply to claims or liabilities arising under this Maryland law. This protection is explicitly stated to supplement sections 3(b) and 16(d) of the franchise agreement. This ensures that franchisees in Maryland do not waive their rights under the Maryland Franchise Registration and Disclosure Law when renewing, selling, or transferring their franchise.
This provision is crucial for prospective Bumper Man franchisees in Maryland as it safeguards their ability to pursue claims under Maryland franchise law, even if they sign a general release during renewal, sale, or transfer. This addendum is designed to protect the franchisee's rights and ensure compliance with Maryland state law, which takes precedence over conflicting terms in the standard franchise agreement.
Furthermore, the FDD states that all representations requiring a franchisee to assent to a release, estoppel, or waiver of liability will not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This reinforces the protection provided to franchisees under Maryland law, ensuring that they cannot inadvertently waive their rights through standard contractual language. This addendum serves to clarify and override any potentially conflicting clauses in the original franchise agreement, providing additional security for franchisees operating in Maryland.
In practical terms, this means that if a Bumper Man franchisee in Maryland believes they have a claim under the Maryland Franchise Registration and Disclosure Law, they can pursue that claim regardless of any release they may have signed in connection with a renewal, sale, or transfer of the franchise. This provision aims to balance the franchisor's need for releases with the franchisee's statutory rights under Maryland law, offering a more equitable arrangement for franchisees within the state.